Starbucks will close stores and lay off employees across the country as part of a reset. The closures, about 1 percent of its footprint, are expected next week before the end of the fiscal year.
The coffee chain will finish September with roughly 18,300 North American locations, down 124 from last year. Among the closures are two Reserve Roastery stores in Seattle, though the company has not confirmed which New Jersey sites may be affected. Starbucks operates 348 stores across the state.
In a letter to employees, CEO Brian Niccol called the move a significant but necessary action. He said some stores have missed financial targets or failed to meet customer expectations. “Our coffeehouses are centers of the community, and closing any location is difficult,” he wrote.
Alongside the store cuts, Starbucks will eliminate 900 corporate jobs and freeze a significant number of open positions. Employees impacted by the layoffs will be notified Friday and offered severance. Earlier this year, the company cut 1,000 corporate positions.
Reaction from organized labor was swift. Workers United, which represents unionized Starbucks staff, said decisions were once again made without barista input. “This announcement makes it clear things are only going backwards at Starbucks under Brian Niccol’s leadership,” the group said, pledging to bargain for protections and reassignment opportunities.
Niccol, who took over the company last year, has been tasked with reviving growth as Starbucks faces rising competition and pressure to retain customers.
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